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KiwiSaver

Should NZ Super be a benefit or an entitlement

Thursday 21st of October 1999

One of the most fundamental questions in the whole retirement incomes debate is what should the status of the state paid pension New Zealand Superannuation be? Should it be a universal entitlement or a benefit?

 

Currently New Zealand has a universal pension that is paid to every resident once they reach the age of entitlement.

New Zealand is unique among developed countries in having a universal pension as its only form of public pension. Those which come closest are countries such as Norway, Sweden, Denmark and Iceland which operate a part universal pension system, where older citizens receive a modest universal pension from the state in conjunction with an earnings-related contributory pension based on a social insurance model.

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